I particularly welcomed Junior Finance Minister Eoghan Murphy’s comments late last year, in which he stated that cash pay-outs for whiplash should be abolished, and that claimants with whiplash should have their medical costs paid for rather than receive a €15,000 lump sum, as is current policy.

I would agree that tackling Ireland’s growing claims culture is essential if we are to substantially reduce premiums.

As it stands, there is a strong sense of entitlement amongst a small, but significant, cohort of people in Ireland, who believe they are entitled to a big payday if they are involved in the smallest of tips, regardless of any real damage done to themselves or their car.

Read More

Pretending to have whiplash is generally seen as a victimless crime. People believe that insurers have lots of money to pay out, so what’s the harm?

But it is exactly this attitude that is making it so difficult for genuine claimants to get compensation, and that is driving up the cost of car insurance for the general public.

Representative body Insurance Ireland recently informed that motorists are paying an extra €50 in their motor insurance due to fraudulent claims.

If you include exaggerated claims, this figure would at least double. On the basis that soft tissue injuries make up the majority of claims, it’s easy to see how a switch to ‘care instead of cash’ could halve the cost of motor insurance for many people.

Read More

Anecdotal evidence also suggests that more often than not, people choose not to spend the compensation they receive for whiplash injuries on cover medical costs and care, thus creating problems such as arthritis etc in the longer terms.

According to the insurance industry, legal costs can often make up half the cost of some claims. I believe that solicitors will lose appetite for dealing with these claims if there’s less of a bounty to share in.

While these changes may see some people lose out on a big payday, the vast majority will see the cost of their car insurance reduce substantially.